The building of the China Securities Regulatory Commission in Beijing. Photo: VCG

China's securities regulator pledged on Tuesday to maintain capital market stability and attract more long-term investment, as authorities seek to strengthen the market's ability to withstand external risks.

Li Chao, vice chairperson of the China Securities Regulatory Commission (CSRC), made the remarks at the Global Financial Leaders' Investment Summit in Hong Kong on Tuesday, according to the CSRC's official news release platform.

Li said that the CSRC had stepped up market monitoring and strengthened mechanisms to maintain stability in response to multiple unexpected external risks this year.

The regulator will also improve policies to encourage long-term investment, deepen reforms of public mutual funds and steadily increase both the scale and proportion of investments by social security funds, pension funds and insurers, Li said.

The remarks come as China continues to encourage more long-term institutional capital to enter the stock market, with recent figures showing increased investment by major institutions.

Social security funds, pension funds and insurers made combined net purchases of more than 600 billion yuan ($89.94 billion) in A-shares in the first three quarters of this year, while the market value of their tradable A-share holdings was up 12.5 percent from the end of 2025, according to official data released on September 10.

China's public mutual fund industry generated 1.74 trillion yuan in profits for investors in the first half of 2026, according to the CSRC.

The latest remarks follow a pledge by CSRC Chairperson Wu Qing at the Financial Street Forum in Beijing on October 19 to improve long-term performance assessment mechanisms, expand investment channels for institutional funds and further reform the mutual fund industry.

On market stability, Wu called for closer monitoring of risks at home and abroad, particularly those involving leveraged products linked to individual A-shares traded overseas. He also encouraged eligible listed companies to step up share buybacks and shareholding increases to better reward investors.

The measures are aimed at encouraging longer investment horizons and providing a more stable source of capital for the stock market. Greater participation by pension funds, insurers and other institutional investors could also help reduce short-term volatility and improve the market's ability to support businesses and the broader economy, industry observers noted.